California's Hottest Spots for Your Practice to Thrive in 2026

Welcome to The Perfect Place to Put a Practice! I’m your host, Mike Green, from Doctor Demographics, where we help private practice owners like you find the ideal location to grow your business. Today, we’re diving into an exciting topic for anyone looking to expand or start fresh in 2026: the top five areas in California to open a private practice. 

Before we jump into the list, let’s talk about why California is such a compelling place for private practices. Despite challenges like high costs and regulatory hurdles, California’s economy is the fifth largest in the world, with a GDP of nearly three point nine trillion dollars in 2023. The state leads the nation in new business starts and access to venture capital, making it a hub for innovation and entrepreneurship. Plus, its diverse and growing population—thirty-nine point four million as of 2025—creates a strong demand for healthcare services. But where exactly should you set up shop? We’ve analyzed population growth, economic trends, and demographic shifts to bring you the top five areas for 2026. Let’s dive in!

Starting our countdown at number five is San Benito County, a hidden gem in Central California, just south of the Bay Area. This region is experiencing rapid population growth, making it a hotspot for private practices, especially for those serving families and younger demographics. San Benito County is one of California’s fastest-growing regions, with a population increase of over one percent annually, driven by affordable housing compared to nearby Santa Clara County. The county’s population is around sixty-seven thousand, with projections estimating continued growth through 2030 due to migration from coastal areas. The area has a young, family-oriented population, with twenty-eight percent of residents under eighteen and a growing Latino demographic, which makes up sixty percent of the population. This creates demand for pediatric care, family therapy, and general medical services. San Benito benefits from its proximity to Silicon Valley, attracting professionals seeking more affordable living while still commuting to tech hubs. New businesses, particularly in retail and healthcare, are sprouting up to serve this growing population. The county’s lower cost of living compared to the Bay Area makes it easier to establish a practice with manageable overhead. Plus, the rise in small businesses—up ten percent from 2022 to 2024—signals a vibrant local economy. With an aging population alongside young families, there’s a need for diverse services, from geriatrics to mental health. The county’s rural character means fewer competitors, giving new practices a chance to capture market share. If you’re considering San Benito, focus on areas like Hollister, the county seat, where new housing developments are drawing families. Network with local schools and community centers to build your patient base quickly.

At number four, we have Riverside County in the Inland Empire. This sprawling region is a powerhouse of growth and affordability, making it a top choice for private practice owners looking for scale and opportunity. Riverside County added nearly nine thousand residents between 2023 and 2024, driven by migration from expensive coastal areas like Los Angeles and Orange County. With a population of over two point four million, it’s one of California’s largest counties. The county is diverse, with fifty percent Latino, thirty-five percent White, and seven percent Asian residents. This mix supports practices catering to multicultural and multilingual communities, especially in primary care and mental health. Riverside’s economy is booming, with a three point five percent job growth rate in 2024, outpacing the state average. The healthcare sector is particularly strong, growing sixteen percent since the pandemic, compared to nine percent nationally. New businesses, including medical offices, are thriving due to lower commercial real estate costs. The county saw a twelve percent increase in business establishments from 2021 to 2024, with healthcare and social assistance leading the charge. The California Jobs First initiative has also invested heavily here, creating jobs and infrastructure to support growth. The region’s rapid population growth and aging demographic—fifteen percent over sixty-five—drive demand for specialties like orthopedics, cardiology, and physical therapy. The Coachella Valley, in particular, is a hotspot for retirees and seasonal residents. Look at cities like Riverside or Temecula for your practice. These areas combine urban amenities with suburban affordability. Partner with local hospitals like Riverside Community Hospital to tap into referral networks.

Coming in at number three is Sutter County, located in the Sacramento Valley. This area is a surprising contender, but its growth metrics and underserved healthcare market make it a smart choice for 2026. Sutter County topped California’s population growth charts in 2024, with a one point two percent increase, adding over twelve hundred residents to its population of about one hundred thousand. Affordable housing and proximity to Sacramento are key drivers. The county is diverse, with thirty percent Latino, fifteen percent Asian, and fifty percent White residents. Its younger population, with a median age of thirty-five, and high birth rates create demand for pediatric and family-focused practices. Sutter County benefits from its agricultural roots and growing suburban developments. New business starts are up eight percent since 2022, with healthcare and retail leading the way. The county’s lower cost of doing business compared to Sacramento makes it attractive for startups. The county is medically underserved, with only point eight physicians per one thousand residents compared to the state average of two point one. This gap creates opportunities for primary care, dental, and mental health practices. The California Jobs First Economic Blueprint highlights Sutter County for its potential in healthcare expansion, with state investments supporting new clinics and workforce development programs. Focus on Yuba City, the
county’s largest city, where new housing and commercial developments are concentrated. Consider telehealth services to reach rural patients and build a loyal client base.

At number two, we have San Diego County, a coastal powerhouse with a balanced mix of urban sophistication and suburban growth. This region is a magnet for private practices due to its diverse population and strong economy. San Diego County added over five thousand seven hundred new housing units in 2024, supporting a population increase of point three percent to three point three million. Growth is driven by immigration and domestic migration to suburban areas like Chula Vista and Carlsbad. The county is thirty-four percent Latino, twelve percent Asian, and forty-five percent White, with a median age of thirty-seven. This diversity and relatively young population fuel demand for specialties like family medicine, dermatology, and mental health services. San Diego’s economy is robust, with a two point eight percent GDP growth rate in 2024. The healthcare sector is a major employer, with one hundred twenty-nine federally-funded health centers serving three point five million patients annually. New business starts in healthcare grew ten percent from 2022 to 2024. The county’s biotech and medical research hubs, like those in La Jolla, create a supportive environment for practices specializing in cutting-edge treatments. Venture capital funding is also abundant, ranking San Diego among California’s top regions for investment. With a high proportion of insured residents—ninety percent covered through Medi-Cal or private plans—San Diego offers a stable patient base. The county’s focus on wellness and active lifestyles also boosts demand for chiropractic and physical therapy practices. Target suburban areas like Encinitas or Poway for lower competition and growing populations. Leverage San Diego’s tourism industry by offering services tailored to seasonal residents and visitors.

And now, the number one area in California to open a private practice in 2026: Santa Clara County in the Bay Area. This region, home to Silicon Valley, is the gold standard for economic opportunity and demographic diversity. The Bay Area, particularly Santa Clara County, saw a point five percent population increase in 2024, reaching one point nine million. Growth is driven by high-skilled immigration, especially from Asia—forty percent of the population is Asian—and a rebound in tech hiring. With a median income of one hundred thirty-one thousand dollars—double that of many inland areas—Santa Clara County has a wealthy, educated population. The median age of thirty-eight and high proportion of professionals create demand for specialized services like cosmetic dentistry, psychiatry, and orthopedics. The tech industry drives a three point two percent GDP growth rate, with companies like Skydio and Tau Motors receiving millions in state tax credits for expansion. Healthcare business starts grew fifteen percent from 2022 to 2024, fueled by venture capital and innovation. Santa Clara County is a hub for healthcare innovation, with startups in telemedicine and medical devices thriving. The county’s high per capita personal consumption—sixty thousand dollars annually—supports premium practices. The region’s high-stress tech workforce drives demand for mental health services, while an aging population—twelve percent over sixty-five—needs geriatric care. The presence of top-tier hospitals like Stanford Health Care offers collaboration opportunities. Focus on cities like San Jose or Palo Alto, where affluent patients and corporate partnerships abound. Invest in digital marketing to reach tech-savvy clients and consider niche services like executive health screenings to stand out.

Let’s recap our top five areas in California for opening a private practice in 2026: Santa Clara County—unmatched economic opportunity and a diverse, affluent population. San Diego County—a balanced mix of growth, diversity, and a wellness-focused community. Sutter County—rapid population growth and an underserved healthcare market. Riverside County—affordable, diverse, and booming with new businesses. San Benito County—a growing, family-friendly region with lower competition. Each of these areas offers unique advantages, from affordability to high-income patient bases. When choosing your location, consider your specialty, target demographic, and budget. Also, keep an eye on California’s Jobs First Economic Blueprint, which is funneling investments into these regions to support healthcare growth.

Want personalized advice on where to open your practice? Visit doctordemographics.com for a free consultation with our team. We’ll analyze your needs and match you with the perfect location. Also, subscribe to The Perfect Place to Put a Practice on your favorite podcast platform and leave us a review to share your thoughts!

Opening a private practice in California is a bold move, but with the right location, it’s a recipe for success. These five areas—San Benito, Riverside, Sutter, San Diego, and Santa Clara—are poised for growth in 2026, offering diverse opportunities for private practice owners. Stay informed, plan strategically, and you’ll find the perfect place to thrive. I’m Mike Green, and this has been The Perfect Place to Put a Practice. Until next time, keep building your dream practice!

Sources: Population and economic data from U.S. Census Bureau, California Department of Finance, PPIC.org. Business growth trends from business.ca.gov, Statalloc.gov. Healthcare demand from California Health Care Foundation, KFF.org.